78R10881 ATP-F
By: West H.B. No. 3075
A BILL TO BE ENTITLED
AN ACT
relating to local agreements to allow certain development
corporations and taxing units to invest in and receive tax revenues
from certain regional economic development projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4A, Development Corporation Act of 1979
(Article 5190.6, Vernon's Texas Civil Statutes), is amended by
adding Subsection (u) to read as follows:
(u)(1) In this subsection:
(A) "Base taxable value" means the taxable value
of property located in the defined area of a project as of January 1
of the year in which the agreement is entered into under this
subsection.
(B) "Corresponding taxing unit" means another
taxing unit of the same type of political subdivision as a taxing
unit that enters into an agreement under this subsection.
(C) "Taxing unit" has the meaning assigned by
Section 1.04, Tax Code.
(2) Before entering into an agreement under this
subsection, the corporation undertaking the project must designate
a defined area that includes the territory where the project is to
be located.
(3) A taxing unit may enter into an agreement with a
corporation created under this section to invest in a project that
is undertaken by the corporation and that is not located in the
territory of the taxing unit. A corporation may enter into an
agreement under this subsection with more than one taxing unit.
(4) An agreement entered into under this subsection
shall state the base taxable value of the property in the defined
area of the project.
(5) The agreement may provide that the taxing unit is
entitled to receive from the corporation, in exchange for the
investment, an amount equal to a specified percentage of the tax
revenue from taxes imposed by the corresponding taxing unit that
taxes property located in the defined area of the project on the
taxable value of the property in the defined area that exceeds the
base taxable value, for so long as the corresponding taxing unit
imposes taxes on that property.
(6) If a corporation enters into an agreement under
this subsection, the corporation shall enter into an agreement with
a corresponding taxing unit that taxes property located in the
defined area of the project to recover the amount paid by the
corporation to a taxing unit as provided by Subdivision (5).
(7) This subsection does not affect a taxing unit's
authority to grant a tax abatement.
(8) This subsection does not affect a corporation's
authority to invest in a project or recover its total investment by
contract under Section 23(a) of this Act.
SECTION 2. Section 23(a), Development Corporation Act of
1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
read as follows:
(a) The corporation shall have and exercise all of the
rights, powers, privileges, authority, and functions given by the
general laws of this state to nonprofit corporations incorporated
under the Texas Non-Profit Corporation Act, as amended (Article
1396-1.01 et seq., Vernon's Texas Civil Statutes); but to the
extent that the provisions of the general laws are in conflict or
inconsistent with this Act, this Act prevails. In addition, the
corporation shall have the following powers with respect to
projects together with all powers incidental thereto or necessary
for the performance of those hereinafter stated:
(1) to acquire, whether by construction, devise,
purchase, gift, lease, or otherwise or any one or more of such
methods and to construct, improve, maintain, equip, and furnish one
or more projects undertaken by a different corporation or located
within the state or within the coastal waters of the state and
within or partially within the limits of the unit under whose
auspices the corporation was created or within the limits of a
different unit, where the governing body of the different
corporation or the unit [thereof] requests the corporation to
exercise its powers therein;
(2) to recover the costs of an investment under
Subdivision (1) of this subsection from a unit or another
corporation under a contract that may have an unlimited duration;
(3) to lease to a user all or any part of any project
for such rentals and upon such terms and conditions as its board of
directors may deem advisable and not in conflict with the
provisions of this Act;
(4) [(3)] to sell by installment payments or otherwise
and convey all or any part of any project to a user for such purchase
price and upon such terms and conditions as its board of directors
may deem advisable and not in conflict with the provisions of this
Act;
(5) [(4)] to donate, exchange, convey, sell, or lease
land, improvements, or any other interest in real property or
furnishings, fixtures or equipment, or personal property to an
institution of higher education for a legal purpose of the
institution upon such terms and conditions as the corporation's
board of directors may deem advisable that are not in conflict with
the provisions of this Act;
(6) [(5)] to make secured or unsecured loans to a user
for the purpose of providing temporary or permanent financing or
refinancing of all or part of the cost of any project, including the
refunding of any outstanding obligations, mortgages, or advances
issued, made, or given by any person for the cost of a project; and
to charge and collect interest on such loans for such loan payments
and upon such terms and conditions as its board of directors may
deem advisable and not in conflict with the provisions of this Act;
(7) [(6)] to issue bonds for the purpose of defraying
all or part of the cost of any project, whether or not the bonds are
exempt in whole or part from federal income taxation, to secure the
payment of such bonds as provided in this Act, and to sell bonds at a
price or prices determined by the board of directors or to exchange
bonds for property, labor, services, material, or equipment
comprising a project or incidental to the acquisition of a project,
and those bonds may bear interest at any rate or rates determined by
the board of directors, subject to the limitations set forth in this
Act;
(8) [(7)] as security for the payment of the principal
of and interest on any bonds issued and any agreements made in
connection therewith, to mortgage and pledge any or all of its
projects or any part or parts thereof, whether then owned or
thereafter acquired, and to assign any mortgage and repledge any
security conveyed to the corporation to secure any loan made by the
corporation and to pledge the revenues and receipts therefrom;
(9) [(8)] to sue and be sued, complain and defend, in
its corporate name;
(10) [(9)] to have a corporate seal and to use the same
by causing it or a facsimile thereof to be impressed on, affixed to,
or in any manner reproduced upon instruments of any nature required
to be executed by its proper officers;
(11) [(10)] to make and alter bylaws not inconsistent
with its articles of incorporation or with the laws of this state
with the approval of the unit under whose auspices the corporation
was created by resolution of the governing body for the
administration and regulation of the affairs of the corporation;
(12) [(11)] to cease its corporate activities and
terminate its existence by voluntary dissolution as provided
herein; and
(13) [(12)] whether included in the foregoing or not,
to have and exercise all powers necessary or appropriate to effect
any or all of the purposes for which the corporation is organized
which powers shall be subject at all times to the control of the
governing body of the unit under whose auspices the corporation was
created.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.